Lorenz dominance and non-welfaristic redistribution

Roland Iwan Luttens*, Dirk Van De Gaer

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Our concern is for income inequalities that may result from non-welfaristic redistribution schemes. We show that for large classes of income functions Lorenz dominance results can be found in the comparison of two egalitarian equivalent mechanisms. Comparisons of different conditionally egalitarian mechanisms only yield poverty dominance results. In general, no egalitarian equivalent mechanism can be Lorenz dominated by a conditionally egalitarian mechanism. Our analysis stresses the need for accurate empirical estimates of the pre-tax income function and of the distributions of responsibility and compensation characteristics.

Original languageEnglish
Pages (from-to)281-302
Number of pages22
JournalSocial Choice and Welfare
Volume28
Issue number2
DOIs
Publication statusPublished - 2007

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